This bat might be the start to resume the previous downtrend.
SL above X of the bat, no 38.2% target for me, 61.8, 88.6 and the full 100%...
Let's see what happens!
Yes, AUD has been going strong for the past weeks, I'm long AUD/NZD for the long run by the way (from 1.0504, up almost 500 pips, 1st important target might be coming up soon...), I also have an AUD/USD long running with SL at BE so my open positions are all LONG!
What concerns this pair: the move from this bat's A point to the C point looks like a corrective structure, i.e. a contracting triangle which could suggest that we might get downtrend continuation soon.
The 3 previous down moves and corrections look like a 5 wave EW structure allthough wave 4 overlaps wave 1 a little so technically it's not valid. Still the last up move looks like a zigzag correction before possibly continuing the downtrend.
In any case this is a good setup for me, with good R/R and so I'm taking it (orders got filled today)! It doesn't matter to me if it's in the other direction of my AUD/NZD and AUD/USD longs, for all I know we might get a short retracement from this bat and then move further up from there-on, it could all fit within a larger structure.
We'll just have to wait-and-see, no-one knows what will happen, I can only put in my best efforts in analysing the situation, but hey: I'm still a novice... so if you don't feel good with this trade: DON'T TAKE IT, ONLY TAKE IT IF YOUR OWN ANALYSIS CONFIRMS IT!
Cheers and good luck!